LONDON (Alliance News) - Shares in Wolf Minerals Ltd jumped on Monday after the company said that all the conditions for the standstill arrangements with the its existing senior lenders have been satisfied.
Shares in the specialty metals producer were trading up 13% at 2.20 pence each on Monday.
Last week, the company said it executed all necessary full form standstill and amended and restated agreements relating to its debt facilities with its senior lenders and bridge loan facility with Resource Capital Fund VI LP.
These moves will support the company's short-term working capital requirements until October 28.
Wolf Minerals added that as part of the process to satisfy the conditions, it has been granted a waiver which allows it to grant Capital Fund security for the amended bridge facility without shareholders' approval.
At the end of July, the company increased its existing bridge facility to GBP69 million from GBP65 million while also agreeing a standstill with lenders over outstanding fees and default matters, and the deferral of principle and interest payments of GBP2.1 million until October 28.
Wolf Minerals added it also agreed with Resource Capital Fund VI a further GBP4 million secured priority loan, which could go up to GBP5 million.
